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posted Apr 12, 2024 2:18:26 AM

Capital loss from sale of unqualified shares of company to foreign trust

I purchased 2000 unqualified shares of my former UK-based employer, and was required to sell them back at a loss when I quit my job. I'm trying to claim this as capital loss, and see the form 3520 is clearly related to my situation... however, it isn't supported by turbotax, and I'm not sure if I should also fill out form 1099-B so that the loss is registered in my income section? 

 

PS I'm quite bitter about the situation so I'm hoping the least I can do is get the $400 or so back in tax refunds!

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1 Replies
Expert Alumni
Apr 16, 2024 1:36:39 PM

Yes, you would need to report this in the stocks and bonds section of the return.  You wouldn't report it like a 1099B since you don't have it but report in the following manner.

 

  1. Go to federal
  2. Wages and income
  3. Investment Income
  4. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’  
  5. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
  6. Since you did not receive a 1099-B, answer “no” to the 1099-B question
  7. Choose type of investment you sold - Stocks, mutual funds, bonds etc.
  8. Skip import if you are asked this
  9. If it asks for the Brokerage, indicate your employers name if this wasn't handled by a brokerage.
  10. How did you receive the investment. Choose the appropriate answer
  11. On what did did you receive this investment.   
  12. Some basic information:
    1. Description –  Usually the address of the property sold
    2. Sales Proceeds –  The amount you received for the sale
    3. Date Sold – Date you sold the property
    4. Cost or other basis  (This is where you put the purchase price of the shares)